Creative Circle’s Post

I had the opportunity to hear Marc Rosen of JCPenney speak at DFW Retail Executives Association. One of the things that resonated was creating accessibility in their product portfolio to reach their customer, "America's diverse, working families, is having the right mix of private label & national brands. In an era where giants like Amazon have discontinued a majority of their private label brands, other Multi-Brand Retailers are thriving, due to: 1/ Driving customer loyalty & brand awareness through private-label brands (e.g. JCPenney's Hope & Wonder brand has continued to expand with a purpose-driven mission that not only does good but aligns with their brand promise) 2/ Filling a particular customer need that complements your other private label and national assortments, think niche (e.g. 3 of Target's hyper-focused private label brands were listed as top 10 fastest growing store brands) 3/ Balancing high quality (product & packaging) with lower price (e.g. Kirkland's brand is built on a recognizable product quality and price and brings in 25% of Costco Wholesale's revenue) Although there are a number of other factors, considerations, and best practices in scaling private label brands as a multi-brand retailer, loyalty, fulfilling a specific customer need, and balancing quality and cost are integral. For more, check out this post from Clarkston Consulting's Sean Burke. #retail #privatelabel https://lnkd.in/gxYk37KN

Major retailers like Target, Costco, Walmart, and Kroger are turning to their private store brands to revive declining front-of-store sales. Private labels are the secret weapon behind today's retail giants, and there's a reason they're taking the spotlight! 🛒🌟 🔹 Cost-Efficiency: Private labels offer products that are not only cost-effective for retailers but also budget-friendly for consumers. 🔹 Unique Branding: Private labels allow retailers to create a unique identity and build brand loyalty. 🔹 Control & Flexibility: With private labels, you have control over quality, ingredients, and trends, ensuring products are tailored to your target audience. 🔹 Increased Margins: Private labels often yield higher profit margins, boosting your bottom line. CG Access Group specializes in making private labels work for you! 🤝 Our expertise lies in developing and nurturing strong relationships with major retailers.  Let us be your guide through the entire private-label journey! Read more here: https://lnkd.in/gNatruBa #PrivateLabels #RetailRevival #RetailStrategy #CGAccessGroup

A confidential 2006 report for Wal-Mart executives highlighted that the retailer's traditional strengths, including its reputation for discounts and all-in-one shopping, were hindering its move upscale. The report noted that Wal-Mart was not considered a smart choice for higher-end merchandise and that low prices could imply low quality. It suggested the need for a transformation in image and recommended improvements like a more flexible returns policy for electronics. Despite Wal-Mart's massive customer base, the report emphasized the importance of addressing changing consumer preferences and market dynamics to counter its declining reputation. https://lnkd.in/gu58TQte #SPRING2024SCLT4380 Gulshan Singh, PhD Margaret A. Kidd, CMILT, CPE™ Supply Chain & Logistics Technology - University of Houston

Which private label brands do you regularly buy, and which ones do you steer clear of? Private label brands have really taken off lately, thanks to shifting consumer habits and better supply chains. What used to be seen as just cheaper alternatives are now often just as good, if not better, than big-name brands. Retailers are putting more effort into making their own brands look and feel premium, focusing on quality, packaging, and clever marketing. This trend is especially noticeable in areas like groceries, clothing, and personal care, where people are more mindful of their spending and willing to try something new. I've had a mix of experiences with private label products. Whether it's clothing, household items, or groceries, I've found some fantastic options that have become staples in my shopping routine, while others were definite misses that I won't be trying again. What motivates you to give a private label product a shot? https://lnkd.in/gpQA8T7q

Turning the labels #PrivateLabelPower #RetailTrends #ConsumerSavings #AldiDominates #WalmartBrands #ShopSmart #MarketInsights #RetailRevolution #BrandCompetition #NumeratorData

(USA 08.02.24) Why more grocers are putting electronic shelf labels in their stores [AG: And why should our major Australian retailers follow suit] More grocers are adopting electronic shelf labels (ESLs) for real-time inventory management, flexible promotions and labor savings. ESLs improve pricing accuracy, enhance operational efficiency and support new retail media opportunities. With costs decreasing and technology advancing, ESLs are becoming more reliable and widely implemented. ----- [AG: For quite some time now, Aldi Australia has been setting the benchmark for operational efficiency in the retail industry. Their adoption of electronic shelf labels (ESLs) is just one example of how they are leveraging technology to streamline operations and reduce costs. Yet, it's perplexing that our other major fresh produce retailers seem reluctant to follow suit, despite the clear advantages. Aldi's approach to retail is all about minimizing operational costs. They employ fewer, but more multiskilled staff, ensuring that every employee can handle a variety of tasks. Their coin trolley system is another stroke of genius, eliminating the need for staff to collect shopping trolleys scattered around car parks. This alone saves significant labour costs and enhances operational efficiency. It's baffling why our major retailers continue to spend a fortune on shopping trolley collection methods when a simple, cost-effective solution is right in front of them. The priority for discounters like Aldi is to run on the lowest possible operational costs to stay competitive. This focus on efficiency is something our major Australian fresh produce retailers stubbornly refuse to tackle. The million-dollar question is: why? Instead of embracing innovations like electronic shelf labels, which provide real-time inventory management and flexible promotions, our major retailers persist in wasting money on weekly or even daily physical shelf label changes. This practice not only inflates labor costs - costs that ultimately get passed on to you, the consumer - but also contributes to environmental waste. Outdated labels are discarded and new ones are produced, further impacting the environment with their associated costs and carbon footprint. It's high time for our major fresh produce retailers to wake up and smell the efficiency. Adopting electronic shelf labels and other cost-saving measures isn't just about keeping up with Aldi - it's about staying relevant in a rapidly evolving retail landscape. By reducing operational costs and embracing innovation, they can offer more competitive prices to consumers and reduce their environmental footprint. The path to future success for our major Australian fresh produce retailers lies in their willingness to change and adopt more efficient practices. Aldi's model is a proven success; it's time others took note.] -----

💄 The Impact of Deep Discounting in the Color Cosmetics Industry: A Closer Look 🌟 Deep discounting is a popular strategy in the color cosmetics industry, but it has significant consequences that extend beyond immediate sales boosts. Here’s a snapshot of its impact on various stakeholders and the industry’s future. 📉 1. Salespersons’ Struggles: Sales teams face mounting pressure due to the disparity between online and offline pricing: Challenges: Sales teams must explain why retailers should support products that are significantly cheaper online. Retailer Pressure: Retailers demand justification for these pricing discrepancies, adding stress to the sales team’s role. 2. Retailers’ Dilemma: Retailers are affected in several ways: In-Store vs. Online: Consumers often test products in stores but purchase online due to better discounts, hurting store profitability. Deceptive Practices: Retailers and beauty advisors feel misled when customers use their services but buy online at discounted rates, leaving them with costs but no corresponding sales. 3. Impact on Small Players and Local Shops: Small retailers and local shops face specific challenges: Focus Shift: Many are turning to lesser-known or imported brands to avoid the intense discounting pressures from major brands. Market Squeeze: Deep discounts from larger brands make it harder for smaller shops to compete, sometimes leading to their closure. 4. Consumer Behavior and Its Effects: Consumer habits influenced by deep discounting are reshaping the market: Online Price Checking: Checking online prices before buying in-store is common, challenging physical stores to retain customers. Brand Perception: While discounts attract consumers, they can dilute brand value and harm long-term brand equity. 5. Moving Forward: To address these challenges, the industry needs to consider alternative strategies: Balanced Pricing: Aligning online and offline prices could support both sales teams and retailers. Support for Retail Partners: Strengthening collaboration with retail partners to ensure fair compensation and clear discounting practices. Support for Local Businesses: Encouraging support for local and smaller retailers is crucial for a diverse market. Deep discounting has its benefits, but the industry must address its broader implications. Let’s discuss how we can create more equitable practices that support every link in the supply chain. Share your insights below! 💬👇 #CosmeticsIndustry #DeepDiscounting #RetailChallenges #SalesImpact #SupportLocalBusinesses #FairPricing #MAKEUP #SKINCARE #SUGAR #NYKAA #RENEE #FACESCANADA #MAYBELLINE #SALESFORCE

87% of senior grocery executives believe that the future of grocery marketing is heading towards hyper-personalization. While we're seeing some of this beginning to happen in promotions and marketing, there's still a lot of room for growth in other areas like merchandising, distribution, service models, and checkout systems. Here's something to ponder: grocery retailers typically offer over 30,000 stock-keeping units (SKUs), but the average customer only buys around 300 different products. The traditional idea of keeping customers in store longer by making them browse through a vast array of products - most of which they don't want - may not be the most efficient approach. Instead, says Deloitte, grocers should find ways to create a unique in-store experience for each customer, tailored to their specific needs. At the heart of this are technologies like endless aisles, allowing stores to devote more space to new products and engaging experiences. Lots of great data and insights in this report from Deloitte. https://bit.ly/3LuES2i